RichardHenshall

QUADRO 8C - RESIDÊNCIA FISCAL PARCIAL of the Modelo 3 return seems to address this issue. The notes suggest that two returns are necessary, one for the period as non-resident and one for the period as resident.

I would assume that any annual allowances or thresholds for residents are adjusted pro-rata to cover the period of residency.

Red Eric

So it does - thanks for the correction.

Ukkram

Thanks Richard. Now I'm wondering if AT will tax the non resident period as well otherwise why would they want it?

RichardHenshall

I would assume that as a non-resident the only items that would be declared for that period are those that are taxable in Portugal, such as income from Portuguese real estate.

Presumably they just want it for completeness.

Ukkram

Ah. Makes sense now. When you cease to be a resident your assets such as securities and shares are "deemed as Sold" the day before and bought at the same price the day after. This capital gains tax paid to your country of origin will readjust the base cost to a new market related price.
So your assets will start on a clean slate for PT tax.

ricko

My understanding is that you have to wait 3 months before you are granted residency ( so that would be March 2018).
So, paradoxically, with backdating of tax residency, tax residency will be from a date prior to residency - is that correct?

RichardHenshall

I'm not clear why you feel the need to be granted residency, some time after arrival.

If you're an EU citizen, then you have the right to reside in Portugal. If you're not and you're coming to Portugal to reside, you presumably obtain a visa that gives you the right to do so, even if there are subsequent formalities requiring completion at a later date.

If you're not tax-resident in Portugal from arrival in Portugal as an immigrant, where are you tax-resident?

ricko

I've read previously that an EU citizen is allowed to live in Portugal for 3 months but must then formally apply for residence.

This makes sense, but what if the residency application is denied?

David_c

Ukkkram,
Are you thinking about moving to Portugal and benefit from the NHR regime? Because I'm a close friend of a Tax Lawyer, we would be helpful and keen to answer your questions.
If you want the contact (email or phone number) just say so!
Best Regards,
David.

RichardHenshall

An EU citizen is allowed to live in Portugal for 3 months without formally registering their residence. Once the 3 months are up you must register your residence within 30 days. It's not an application for permission to become a resident, more a notification that you've become a resident. You do not need to wait 3 months if you know you're staying.

There are, no doubt, some situations where you may be asked to leave the country at some stage but I would imagine that this is very unusual and I suspect tax affairs might be unimportant to you in that event.

Pilou

Correct! The Camara did not ask how long ago we arrived in Portugal. Went today and it was done in 30 minutes in a super friendly way. We arrived November 1.

AliceCaroline

Thats good news Pilou.

Which Camara did you use as I think you are in the area we are moving to?

Please keep us updated on how you get on with registering for healthcare.

Ukkram

Thanks David. That would be great if you can PM me the email address. I need help desperately.

Pilou

The Camara in Portimao. They speak english.
We will receive an email as soon as our residency-card is ready.

AliceCaroline

Thank you for replying. We will be using the on in Lagos, hopefully they will be as helpful.